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Coinspeaker
Jupiter (JUP) Announces 50% Fee Buyback—Will This Fuel a Major Price Rally?
Jupiter ($JUP), the largest decentralized financial (DeFi) protocol focused on liquidity aggregation on the Solana (SOL) network, has announced a major change in its revenue use. Starting on Monday, February 17, Jupiter will allocate 50 percent of its fees towards repurchases of JUP tokens.
The JUP buyback will happen on an hourly basis with full transparency to establish trust with the vast community. Furthermore, the Jupiter team has promised to launch a dashboard next week, which displays all the buybacks and locked JUP for the next three years.
JUP Buyback Details, Meow's 555 Proposal, ASR, and more | J.U.P Planetary Call #37 https://t.co/5WV0PAwYda
— Jupiter (🐱, 🐐) (@JupiterExchange) February 13, 2025
Expected Impact on Jupiter
The token buyback works in a similar manner to the stock repurchase programs geared to incentivize the shareholders, in this case, the JUP community. Since its launch, JUP has attracted more than 978k on-chain holders due to the rising popularity of Solana-based tokens.
The Jupiter platform has grown to a vibrant DEX aggregator, with more than $2.6 billion in total value locked (TVL). As a result, Jupiter recorded over $52 million in annual fees, which reciprocated to a revenue of about $9.16 million in the past 12 months.
The buyback will help attract more JUP holders, which is bullish in the long haul. Moreover, the overall circulating supply of JUP will decrease exponentially in the long haul amid the ongoing mainstream adoption of digital assets, more so on the Solana network.
The Solana network has grown in the past year to a vibrant Web3 ecosystem backed by memecoin creation via Pump.fun. With the ongoing crypto regulatory improvement in the United States under President Donald Trump, Jupiter is well positioned to attract more users, thus increasing its fees collected.
However, it is worth noting that the repurchased JUP tokens are not completely obliterated, akin to BNB, Shiba Inu (SHIB), PancakeSwap (CAKE), and Floki among others. The locked JUP tokens will later be introduced to the secondary market, thus weighing down on the artificially inflated altcoin.
What Next for JUP Price?
Since April 2024, JUP’s price has been consolidating in a bullish channel. The mid-cap altcoin, with a fully diluted valuation of around $8.3 billion and a 24-hour average trading volume of around $190 million, has been retesting the lower border of the bullish channel in the last few months.
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Source: TradingView
In the daily time frame, JUP price has been forming a potential inverted head and shoulders pattern coupled with a bullish divergence of the Relative Strength Index (RSI). Consequently, the JUP price is well positioned to rally towards $1.6, which coincides with the 1.618 daily Fibonacci extension, if the altcoin consistently closes above the resistance level around $1.27.next
Jupiter (JUP) Announces 50% Fee Buyback—Will This Fuel a Major Price Rally?
